What Are Utilities? [2024 Residential Guide]

When calculating your apartment budget, it’s easy to think about monthly rent, but it’s also essential to include utilities. Of course, different factors play into what you’ll pay each month.

That's why we’ve put together this overview and how-to guide surrounding utilities to get you the information you need as a renter.

Guide to Utilities

What Are Utilities?

Utilities are the basic services needed to keep your apartment comfortable and functioning properly, and they include services like gas, electricity, water, trash, and recycling. Additional technology subscriptions like cable, internet, phone, security, and even streaming services can also be considered utilities.

5 Examples of Utilities When Renting an Apartment

When renting an apartment, the utilities you are responsible for paying may differ from when you own a home. Here is a list of utilities for an apartment you can anticipate paying for as a renter.

• Water
• Gas and Electricity
• Trash and Recycling
• Internet and Cable
• Security

Water

The local municipality controls the water and trash pickup for apartments. When you pay for water and sewage, you are paying for:

• Appliances that use water (washing machine, dishwasher, etc.)
• Sewage system
• Water in kitchen
• Water in bathroom

The city bills each building based on water usage, tracked by a meter. As a renter, the water and sewage bill will either come to you, the renter, or your landlord.

You might wonder,

Isn't water included in apartment rent?

Well, some landlords who receive the bill directly will build the average monthly water and sewage cost into monthly rent rather than having renters pay the exact amount each month.

Gas and Electricity

All apartments require electricity. As such, most landlords require renters to set up their own accounts with the local electric company and manage their electric bills for apartments. Because electricity costs can fluctuate throughout the year, it is easier for tenants to manage their monthly accounts rather than landlords. Some of the factors that impact electricity charges include:

• Electronics
• Heating and cooling systems
• Lightbulbs
• Appliances

Gas is another common utility, although it is not found in every apartment.

Gas can be used to power a gas stovetop or run a water heater, although there are electronic options as well. If your apartment uses gas, your landlord will likely ask you to set up an account, much like you will have to with the local electricity company.

Trash and Recycling

A shared garbage container often manages trash and recycling in apartment buildings. Therefore, the trash and recycling utility expense is waste removal, which may or may not be covered by your landlord.

If you’re renting a standalone unit or house, landlords may request that you set up the trash and recycling service in your name and manage the payments independently.

Internet and Cable

Is wifi a utility bill? Internet and cable are considered utilities, although they are not essential for living like others (like electricity and water). Since these services are not essential, you must set these up on your own as a renter.

In some instances, you might find an apartment with internet and cable built into the monthly cost of the rent. Still, you might want to find out if it is cheaper to handle it independently and if that is possible.

Security

Similar to the internet and cable, apartment security is not an essential utility. Still, it can be a utility many renters can’t live without, especially in major cities. Since it is not an essential utility, you will be required to pay for it on your own.

Be prepared to pay upfront for installation and equipment, plus a monthly monitoring fee, when selecting a security system for your apartment.

How to Estimate Utilities When Renting

How much is an electric bill in an apartment? You can avoid surprises by taking the following factors into account when building your apartment budget.

• Light fixtures: Are the light fixtures throughout the apartment using energy-efficient bulbs? Can they be replaced with them?
• Appliances: In-unit laundry and dishwashers are great amenities, but consider the costs associated with utilities, including water and electricity.
• Local weather: What is the weather like year round? Will you need heating in the winter and/or cooling in the summer?
• Apartment size: The square footage of your apartment will directly impact the amount of water and electricity consumption every month.

How to Set Up Utilities in an Apartment

When setting up the utilities in your new apartment, you’ll need to start by finding out who your local providers are. If your landlord does not provide you with this information, you can easily ask them or a neighbor or conduct a quick Google search.

Once you’ve identified your providers, you will need to reach out to each of them individually to begin setting up your accounts. You will need to provide personal information, such as your name, address, and social security number.

How to Save More on Utilities Year-Round

You may quickly find that your monthly utility bills are increasing over time. Thankfully, we’re here to provide you with a few pro tips on how to save more on utilities year-round.

Fall

• Let the sun warm your apartment by opening up your curtains during the day
• Make sure to replace the air conditioner filters
• When possible, turn your air conditioner off

Winter

• Switch holiday decorations to LED lights
• On drafty windows, add insulating shades
• Lower your thermostat temperature

Spring and Summer

• Air-dry your laundry
• Drop the temperature on your water heater
• Swap your air conditioner for a fan

All Year

• Consider replacing appliances with energy-efficient options
• Turn off electronics when not in use
• Turn off the lights in rooms that aren’t in use

Find Your Next Place

Hopefully, you no longer have to ask, “what are utilities?” Instead, you’ll focus on calculating your apartment budget while including your monthly utilities. Remember that different factors will go into your monthly utility bills, but there are ways to help minimize extra costs.

Ready to find your new apartment? Take our easy quiz to get matched to your ideal location, price range, and amenities.

Utilities FAQs

Is Wifi Considered a Utility?

Internet access is considered a utility. Wifi routers are often included as part of your access or as a separate charge on your internet bill, but either way, when you pay for your wifi, you'll be paying a utility bill.

Is Cleaning a Utility Expense?

Cleaning is generally categorized as a different kind of expense from a utility when you're budgeting for an apartment. Utilities are the services that keep your apartment functioning (like electricity and water). Cleaning is part of upkeep.

What Should You Budget for in Utilities?

According to 2021 census data, the average American spends $253.14 per month on utilities. Keep in mind, however, that actual utility costs varies widely based on your location and the appliances you use. That's why we created this helpful guide to utility costs.